DVB Bank SE (“DVB”) has signed an agreement with the Mitsubishi Corporation, Tokyo, Japan (“MC”) and the Development Bank of Japan, Tokyo, Japan (“DBJ”), pursuant to which MC and DBJ will acquire a 35.0% share and a 25.0% share respectively in TES Holdings Ltd., Bridgend, United Kingdom, from DVB. The agreement is subject to required anti-trust clearance.
TES Holdings (“TES” or “the Company”) is the parent company of the TES Aviation Group, a leading aircraft engine solutions provider. The agreement reached with MC and DBJ follows an extensive strategic review of the business by DVB, and the decision to seek new partners to join DVB to support TES’ next stage of development under the continued leadership of its Chief Executive Officer Ashley Cooper. It is expected that the addition of two such prestigious shareholders, each with ambitious plans in the sector, will bring new business dimensions and opportunities for TES, as each shareholder seeks to leverage their own relationships and infrastructure for the benefit of the Company.
Currently DVB indirectly holds 92.1% of the shares in TES Holdings. At completion DVB will first acquire the remaining 7.9% of the shares, then sell in aggregate 60.0% of the shares to MC and DBJ. Post completion, DVB will remain the largest shareholder in TES Holdings at 40.0%, with MC at 35.0% and DBJ at 25.0%. DVB first purchased a majority shareholding in TES in 2007 and the Company has subsequently grown from a turnover of $20 million in 2007 to over $100 million in 2011.